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DAIMLERCHRYSLER appears to have resolved its claim against Japan's Mitsubishi
Page 10
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Motor Corporation (MMC) following its 2003 acquisition of a controlling interest in Mitsubishi Fuso Truck eland Bus Corporation (MFTBC). DaimlerChrysler had claimed compensation for the expenses it had inherited due to safety defects on Mitsubishi Fuso trucks and the subsequent recalls and cover-ups.
The scale of the problem,involving 910,000 vehicles and repairs believed to have cost $610m, is such that every Mitsubishi Fuso HGV built in Japan since 1983 has now been recalled.The main faults relate to defective wheel bearings causing wheel loss and fires these problems have been implicated in a number of fatal crashes There have also been cases of catastrophic clutch failure causing severed brake lines.
A number of MFTBC executives are facing criminal charges.
MFTBCmakes the Canter range sold in the UK, but none of these vehicles is affected. DaimlerChrysler has agreed to accept a cash sum, believed to be hundreds of millions of dollars, and the remaining 20% of MMC's shares in MFTBC.